Today’s Stocks to Watch: Tesla, Coinbase, and Trump Media
Key Points To Watch Out For:
- Coinbase, Tesla and other crypto-linked stocks show big rally after Trump victory
- Trump Media and its affiliates push the so-called “Trump trade”
- Ernst & Young’s exit has a negative impact on Super Micro Computer
Coinbase (COIN), MicroStrategy (MSTR) and Robinhood (HOOD) Lead Gains Amid Bitcoin Surge
Stocks linked to cryptocurrencies rallied in pre-market trading, driven by Bitcoin’s surge past $80,000. The cryptocurrency market has entered a frenzied state following Donald Trump’s election victory, with investors speculating on a more favorable regulatory environment for digital assets under the new administration. Coinbase rose sharply, along with MicroStrategy, known for its significant Bitcoin holdings, and Robinhood, which benefits from retail cryptocurrency trading.
Trump Media Surges Following Election Victory
The parent company of the president-elect’s social network surged in pre-market trading, continuing the trend known as the “Trump trade.” This phenomenon sees specific sectors and companies aligned with Donald Trump’s political and economic agendas experiencing growth during his periods of political prominence. Investors anticipate that Trump’s policies will provide advantages to businesses tied to his administration’s interests. Analysts suggest that this bullish momentum for Trump Media could persist, particularly if the incoming administration announces new economic policies favorable to the tech and media industries.
Tesla Rises on Speculation of Pro-Business Policies
Tesla saw a pre-market rise of approximately 6%, driven by expectations of supportive policies under the new administration. Elon Musk, an outspoken ally of Trump, is anticipated to leverage this political landscape to further expand Tesla’s presence in tech and energy sectors. Analysts predict that potential tax incentives or infrastructure investments could significantly benefit Tesla’s operations in renewable energy and electric vehicles.
Super Micro Computer Faces Decline Amid Auditor Concerns
In contrast, Super Micro Computer faced a drop in after-hours trading. The decline followed Ernst & Young’s resignation as the company’s auditor last month, raising concerns about market confidence. Super Micro Computer, a key player in artificial intelligence server manufacturing, is now under scrutiny. Analysts caution that without the swift appointment of a new auditor, investor sentiment may continue to deteriorate, exacerbating the stock’s downward trend.
